A Put Option You Own Is Going to Expire in One

question 181

Multiple Choice

A put option you own is going to expire in one second. The current stock price is $25 and the strike price of your option is $30. Which of the following statements is NOT true?

• A) Your option has intrinsic value.
• B) Your option should be exercised or sold.
• C) You have the right to sell the stock for $30.
• D) Someone other than you stands to gain $5 per share when the option is exercised.
• E) Your option is in-the-money.

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Definitions:

Prototype/Willingness Model

A behavioral intention model that evaluates an individual's willingness to engage in a behavior based on their prototype or image of a person who performs that behavior.

Health Behavior

Actions taken by individuals that affect their health, including habits related to diet, exercise, sleep, and substance use.

Opportunistic Behavior

Actions taken by individuals or organizations to exploit circumstances to their advantage without regard for principles or consequences.

Prototype/Willingness Model

This model suggests that behavior is influenced by both rational decision-making processes about a behavior's outcomes (prototypes) and an individual's willingness to engage in the behavior in specific contexts.